CAPM states that the investment's expected return should match the expected return of the ________ portfolio with the same level of market risk.
A) capital market line
B) efficient
C) single security
D) diversified

Question

Quizplus · Accepted Answer

The CAPM states that the expected return of an investment should match the expected return of the efficient portfolio with the same level of market risk. The efficient portfolio is the portfolio that has the highest expected return for a given level of risk.

CAPM States That the Investment's Expected Return Should Match the Expected